Purchase Intention of Life Insurance: with Special Reference to Selected Insurance Companies in Batticaloa, Sri Lanka

Abstract

Insurance plays a significant role in the life of humanity. The necessity and need for insurance is felt when something adverse happens in the life of humans. The objective of this study was to identify the main influence factors of consumer purchase intention of life insurance. This research was carried out to investigate the independent variables which are financial literacy, saving motives, and risk aversion motives that will determine the dependent variable (consumers’ purchase intention) of life insurance. The study is mainly considering the primary data. The data were collected through a self-administrated survey method with the use of a closed structured questionnaire from 380 respondents from the selected Insurance Companies in Batticaloa. Further, the researcher used simple random sampling methods to select the sample size. The study used bivariate and linear regression analysis techniques to analyze the collected data. The Pearson correlation technique was used to determine the relationship between these variables. It showed that all the independent variables (financial literacy, savings motive, and risk aversion motive) have a strong positive relationship with the dependent variable (consumers’ purchase intention). Simple regression analysis indicated that financial literacy, savings motive and risk aversion motive have a significant positive impact on consumers’ purchase intention. It is recommended that enhanced awareness campaigns, customized products, improved accessibility, superior customer service, and continuous market monitoring to improve life insurance purchase intention in the selected Insurance Companies in Batticaloa.